Authored by the expert who managed and guided the team behind the France Property Pack
Yes, the analysis of Lyon's property market is included in our pack
What is happening in Lyon’s real estate market? Are prices on the rise or decline? Is the city still attracting international buyers? How are local government policies shaping the real estate landscape in 2025?
These are the questions we hear every day from professionals, buyers, and sellers across Lyon and its surrounding areas. Maybe you’re curious about these topics too.
We understand this because we maintain close connections with local experts and individuals like you, exploring the Lyon real estate market daily. That’s why we crafted this article: to deliver clear answers, insightful analysis, and a comprehensive view of market trends and dynamics.
Our aim is straightforward: to make sure you feel informed and confident about the market without needing to search elsewhere. If you think we missed something or could improve, we’d love to hear your feedback. Feel free to message us with your thoughts, and we’ll strive to enhance this content for you.
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1) The 9th arrondissement will grow due to more affordable housing than central Lyon
The 9th arrondissement in Lyon is becoming a popular choice for people looking for affordable housing. In 2023 and 2024, the average property price in this area was around €2,753 per square meter, which is significantly lower than the prices in central Lyon, where they ranged from €3,082 to €3,682 per square meter. This price difference makes the 9th arrondissement an attractive option for buyers.
Recent real estate market reports have highlighted the growth potential of the 9th arrondissement. These reports point out that it is one of the more affordable areas in Lyon, drawing in buyers who are seeking cost-effective housing solutions. This affordability is a key factor in its growing popularity.
Demographic studies have shown that younger families and professionals are moving to the 9th arrondissement. Lyon's strong job market, especially in fields like biotechnology and software, attracts a diverse group of young professionals who are looking for affordable places to live. This shift in demographics is increasing the demand for housing in the area.
Urban development plans are also playing a role in the growth of the 9th arrondissement. Projects like the Lyon-Confluence urban project are improving infrastructure and creating new residential areas, commercial spaces, and leisure facilities. These developments are making the area more appealing and accessible.
Public transportation expansions are making the 9th arrondissement more connected to central Lyon. New tram lines and train station upgrades are making it easier for residents to commute, which in turn is boosting property values and making the area more desirable.
Testimonials from real estate agents indicate a growing interest in the 9th arrondissement. Agents often mention the area's affordability and potential, noting that it offers a good balance between price and quality of life. This interest is reflected in the increasing number of property sales and rentals.
Case studies of successful property investments in the 9th arrondissement show its potential for growth. Investors are attracted to the reasonable prices and the rising demand, making it a promising area for property investment.
Sources: French Property, PETUS, Properstar Blog, Climate Chance
2) Stricter rental rules will affect short-term rental markets in tourist areas
Stricter rental regulations can significantly impact short-term rental markets in tourist areas like Lyon. In 2023 and 2024, the French Parliament introduced tighter rules, such as reducing tax breaks for tourist properties and capping rentals at 90 days per year. This means property owners have less flexibility in renting out their homes to tourists.
Local jurisdictions in Lyon gained the power to further limit rental durations and set quotas for furnished accommodations. This local control can lead to fewer available short-term rentals, as seen in the decline of active Airbnb listings in Lyon by September 2024. The number of listings dropped significantly compared to other cities, indicating a direct impact of these regulations.
Moreover, the threat of fines for non-compliance adds pressure on property owners. In areas with housing shortages, municipalities can impose fines of up to €15,000 for exceeding rental limits. This financial risk discourages property owners from participating in the short-term rental market, further reducing the number of available properties for tourists.
Sources: Planetizen, Airbtics, Hostaway
We have made this infographic to give you a quick and clear snapshot of the property market in France. It highlights key facts like rental prices, yields, and property costs both in city centers and outside, so you can easily compare opportunities. We’ve done some research and also included useful insights about the country’s economy, like GDP, population, and interest rates, to help you understand the bigger picture.
3) Short-term rental yields will rise in tourist-friendly areas like Vieux Lyon
Lyon attracts around 6 million visitors each year, making it a hotspot for tourists.
Vieux Lyon, with its charming old-world architecture, is a favorite among these visitors. This popularity means short-term rentals here are booked for about 266 nights annually, with a median occupancy rate of 73%. Such demand naturally boosts rental yields.
Platforms like Airbnb are thriving in Lyon, with 5,922 active listings by September 2024. The local government's push for sustainable tourism in Vieux Lyon only adds to its allure, likely driving up rental yields even more.
Short-term rental yields in Lyon tend to peak during tourist seasons. September is especially profitable, with Airbnb hosts earning an average monthly income of €2,324. This highlights the potential for higher returns in tourist-friendly spots like Vieux Lyon.
Sources: Lyon France Press, Connolly Cove, Only Lyon Tourism
4) Luxury properties in central Lyon will keep appreciating due to limited supply
Luxury properties in central Lyon are on the rise, thanks to high demand and limited supply.
People are flocking to Lyon, looking for second homes or simply wanting to upgrade their living standards. This trend, especially noticeable in 2023 and 2024, shows no signs of slowing down. The city’s charm and vibrant lifestyle are big draws, making it a hot spot for luxury real estate.
One major reason for the scarcity of luxury properties is the limited land available for new developments in central Lyon. With fewer opportunities to build, the value of existing properties naturally goes up. Urban planning restrictions, like those in the Part-Dieu district, also play a role in keeping new construction at bay, which supports the high demand for the luxury homes already there.
Lyon's economy is booming, especially in sectors like biotechnology and digital industries. This attracts high-income professionals who are eager to settle in the city, further boosting the demand for luxury housing. Real estate agencies often highlight the city’s strategic location and excellent transport links as key reasons why businesses and residents are drawn to Lyon.
With its strong economic performance and limited property supply, Lyon is a magnet for affluent residents. This influx of wealthier individuals continues to drive up property values, making it a prime location for luxury real estate investment.
Sources: Knight Frank, Mordor Intelligence
5) Property values in the 8th arrondissement will rise as it gains better connectivity to the city center
The 8th arrondissement in Lyon is poised for a rise in property values due to its increasing connectivity to the city center. This is largely driven by the construction of new tram lines, such as the T9 and T10, which are set to enhance transportation links. These tram lines will connect key nodes, making it easier for residents to access the city center and higher education institutions.
In the past, neighboring arrondissements like the 6th and 7th have seen rising property prices, partly due to improved connectivity. This trend suggests that the 8th arrondissement could experience similar benefits. Additionally, the Lyon Confluence project, which aims to transform industrial areas into vibrant city districts, will further boost the area's appeal by improving public transport and creating attractive urban spaces.
Significant government investment in infrastructure, such as the EUR 290 million allocated for the T9 line, underscores the commitment to enhancing the living environment in the 8th arrondissement. This investment is expected to increase demand for housing as the area becomes more accessible and desirable for both residents and businesses.
Sources: Sustainable Bus, PETUS, Paris Perfect
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6) Central Lyon rents will increase due to high demand and limited supply
Rental prices in central Lyon are climbing as demand outpaces supply.
By the end of 2023, renting a furnished one-bedroom apartment in the heart of Lyon cost about 24.3 euros per square meter, while an unfurnished one was around 20.7 euros per square meter. This jump in prices is a clear sign of the growing demand for housing in the area.
Lyon's population is on the rise, with a 0.74% growth rate in 2024, bringing the metro area's population to 1,774,000. More people means more demand for places to live, and Lyon is no exception.
Despite efforts to build new housing, with plans for 8,000 to 9,000 new units each year, it's just not enough. The limited supply of new homes, coupled with high occupancy in existing ones, makes finding a place even tougher.
People are flocking to city centers for better amenities, jobs, and culture, and Lyon is a prime example. As a cultural and economic hub, it draws in professionals and students, all looking for housing in central areas.
Sources: Statista, Macrotrends, Freddie Mac, World's Best Cities
7) Virtual tours and online platforms will simplify the property buying process
Virtual tours and online platforms have truly transformed the property buying process, making it more efficient and accessible. Back in 2023 and 2024, we saw a significant shift in how people engaged with real estate listings. For instance, listings with virtual tours received 87% more views compared to those with only photos. This increased visibility naturally led to more interest and potential transactions.
Moreover, the preference for virtual tours became evident as 75% of prospective home buyers searched online for virtual house tours. This trend was further supported by the fact that 77% of clients preferred taking a VR tour before visiting a property in person. Such preferences indicated a clear demand for more immersive and convenient ways to explore properties.
Additionally, the efficiency of virtual tours was undeniable. Properties with a Matterport 3D digital twin sold 20% more quickly on the market than those without one. This not only sped up the sales process but also helped vendors save time and money by cutting down on wasted viewing time by 40%.
Sources: LLC Buddy, Smart View Media, GoFormz Blog
8) Investors from nearby European countries will be especially active in Lyon's market
Investors from neighboring European countries are eyeing Lyon for some compelling reasons.
Lyon's property market is buzzing, with property prices climbing significantly. The price-to-rent ratio is around 30.68, which is much higher than the world average. This makes Lyon a hot spot for those looking to see their investments grow.
In 2023, France saw a wave of international investments, with 65% coming from European countries. This shows a strong interest in French real estate, and Lyon is likely to benefit from this trend. The “2023 Annual Report on Foreign Investment in France” points out that European investors are drawn to opportunities in decarbonisation, digitalisation, and tech partnerships.
The “France 2030” strategy is also a game-changer, offering incentives for foreign investment. This could lure even more European investors to Lyon. The city is often highlighted in media reports as a prime location for real estate investments, thanks to its economic appeal and the growing interest from abroad.
Sources: Business France, Fiera Real Estate, KKR
We made this infographic to show you how property prices in France compare to other big cities across the region. It breaks down the average price per square meter in city centers, so you can see how cities stack up. It’s an easy way to spot where you might get the best value for your money. We hope you like it.
9) Foreign buyers will increasingly target Lyon for its rising international reputation
Foreign buyers are likely to show increased interest in Lyon due to its growing international reputation for several reasons.
Firstly, the city has seen a rise in international students, particularly from South Korea, with a significant growth rate of 37.5% over the past years. This trend suggests that Lyon is becoming a more popular destination for international students, which can attract foreign investors looking to capitalize on the student housing market. Additionally, improved transportation links between Lyon and major international cities have made the city more accessible, enhancing its appeal to foreign investors.
Moreover, Lyon's participation in international trade fairs and exhibitions, such as the 3D Print Expo, provides substantial opportunities for expanding business networks and promoting products or services. This increased participation enhances Lyon's visibility and appeal to foreign investors. The city's strategic location in France and its growing reputation as a business hub make it an attractive location for foreign businesses, supported by numerous trade fairs and exhibitions held in Lyon.
Furthermore, the presence of international real estate agencies in Lyon supports its growing international reputation, as these agencies often attract foreign buyers looking to invest in the city's real estate market.
Sources: College Factual, Triumfo
10) Asian buyers will begin seeking opportunities in Lyon as part of wider European investments
Asian buyers are likely to start exploring opportunities in Lyon as part of broader European investments for several reasons. First, there has been a significant increase in Asian outbound real estate investments in Europe over the years. This trend is driven by the need for diversification due to regulatory controls in countries like Hong Kong and Singapore, which encourage investors to look beyond their borders.
Additionally, improved connectivity between major Asian cities and Lyon, such as direct flights, makes it easier for Asian investors to travel and conduct business. This ease of access, combined with a growing interest in French culture and lifestyle, could attract more investors to the city. Furthermore, the economic stability of Europe, along with favorable exchange rates, makes European investments more attractive to Asian buyers.
Moreover, media coverage highlighting Lyon as an emerging real estate market could further boost interest from Asian investors. Reports on the city's growing popularity among expatriates and tourists add to its appeal. Finally, partnerships between Asian and French real estate firms can facilitate investments in Lyon by providing expertise and resources, making it easier for Asian investors to enter the market.
Sources: Dentons, Savills, Hubbis
11) Suburban rental yields will dip slightly as more people relocate closer to the city
Suburban rental yields are expected to decline slightly as more people move closer to the city.
With urban populations growing, there's a noticeable shift towards city centers. This is clear from the increasing number of properties listed for sale in urban areas compared to the suburbs. People are naturally drawn to the hustle and bustle of city life, leaving suburban areas with less demand.
City centers are becoming more attractive to potential renters because property prices are on the rise. Take Lyon, for instance, where the average price per square meter is significantly higher in the city center than in the suburbs. This price difference makes city living more appealing, further contributing to the decline in suburban rental yields.
Younger demographics are particularly fond of urban living due to the proximity to work, amenities, and public transport. This preference is a major reason why suburban rental yields are dropping, as more people opt for city center properties. The trend is fueled by increased investment in urban infrastructure, like the Lyon-Confluence urban project, which draws even more residents to city centers.
As cities like Lyon continue to develop, the appeal of urban living grows stronger. The investment in projects like Lyon-Confluence not only enhances the city's infrastructure but also makes it a more desirable place to live, further reducing the demand for suburban rentals.
In summary, the combination of rising city property prices, the allure of urban amenities, and strategic infrastructure investments are all playing a part in the decline of suburban rental yields.
Sources: Doorfeed, Climate Chance, JLL
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12) Property prices in Lyon will stabilize following a period of rapid growth
Lyon's property market has been booming, but signs point to a slowdown.
Back in 2023, the market started cooling off due to stagnant projects and fewer buyers, and this trend continued into 2024. This suggests that the days of rapid growth might be behind us. The Métropole de Lyon has been proactive, investing 10 million euros to support real estate projects, which is expected to increase the supply of new homes. More homes mean less pressure on demand, helping to stabilize prices.
Rising interest rates are also a factor. With borrowing costs going up, fewer people are rushing to buy, which reduces speculative buying and helps stabilize the market. Demographic shifts are also at play, with more folks looking at regional markets outside of urban centers like Lyon. This shift can help balance demand and keep prices steady.
Real estate experts have been talking about this stabilization for a while. Reports from agencies like CoStar suggest that while other regions are bouncing back, France, including Lyon, is taking a more cautious approach. Media reports have even described Lyon's market as experiencing a new real estate crisis, with stagnant projects and a lack of buyers.
Overall, the combination of increased housing supply, rising interest rates, and demographic shifts is expected to lead to more stable property prices in Lyon. This is good news for potential buyers who have been waiting for the market to cool down a bit.
Sources: Blue Sky France Finance, Ground News, CoStar, Varso Invest
13) Long-term rental yields will stabilize with more properties entering the market
In recent years, particularly in 2023 and 2024, Lyon has seen a significant rise in new property developments. Projects like the To-Lyon tower, which is set to be the second-tallest building in the city, are adding a substantial number of rental properties to the market. This increase in supply is a key factor in the stabilization of long-term rental yields.
Moreover, the trend of increased construction activity, as indicated by the rising issuance of building permits, suggests that more rental properties are entering the market. This growing inventory is further supported by developments such as the Silex² building, which contribute to the overall supply of rental properties in Lyon.
Additionally, the declining vacancy rates in Lyon indicate that the market is effectively absorbing the increased supply of rental properties. This absorption helps stabilize rental yields, as the balance between supply and demand becomes more even. Furthermore, investor interest in Lyon's real estate market, driven by low vacancy rates and strong rental growth potential, ensures that new properties are efficiently developed and rented out.
Sources: CTBUH, DWS Group, Visiter Lyon
14) Property buyers will prioritize health and wellness amenities
In recent years, we've seen a noticeable shift in what property buyers are looking for, especially when it comes to health and wellness amenities. Back in 2023 and 2024, there was a significant increase in consumer demand for properties that included wellness features. Builders reported that 59% of them noticed this growing trend, which clearly shows that people are becoming more focused on wellness-oriented lifestyles.
Moreover, the wellness real estate market experienced substantial growth, jumping from $225.2 billion in 2019 to $438.2 billion by 2023. This growth is expected to continue at an annual rate of 15.8% from 2023 to 2028. This indicates that more real estate developments are incorporating health and wellness amenities, such as on-site fitness centers and green spaces for meditation and yoga, to meet this demand.
Additionally, the COVID-19 pandemic played a crucial role in accelerating the understanding of how important our living environments are for our physical and mental health. This heightened awareness has led to an increased demand for properties with integrated wellness features, as people now prioritize health in their home environments more than ever before.
Sources: Core Hand F, Global Wellness Institute
We created this infographic to give you a simple idea of how much it costs to buy property in different parts of France. As you can see, it breaks down price ranges and property types for popular cities in the country. We hope this makes it easier to explore your options and understand the market.
15) Community-focused living spaces will become more popular as people look for stronger social connections
In recent years, particularly in 2023 and 2024, we've seen a noticeable rise in the demand for co-housing and co-living spaces in Lyon. About 15% of the rental accommodations in the city are now co-living or shared spaces, which shows a clear trend towards community-focused living.
Real estate developments in Lyon are increasingly incorporating shared amenities and communal spaces. A great example is the Bikube Coliving Residence, which offers facilities like a fitness room, coworking space, rooftop, and even a vegetable garden. These features are designed to foster a sense of community among residents.
Local government initiatives have also played a role in promoting community engagement and social cohesion. The IESE Cities in Motion Index 2024 highlights how cities like Lyon are integrating inclusion initiatives into their urban development strategies, which supports the growth of community-focused living spaces.
Moreover, the collaboration between developers and local communities in projects like Bikube ensures that these living spaces meet the social needs and values of the residents. This approach not only enhances the appeal of such developments but also strengthens social connections among people.
Sources: Studapart, IESE Cities in Motion Index 2024, Bikube Coliving Residence
16) Suburban property prices may dip slightly as urban living becomes more popular
In recent years, we've seen a noticeable shift in the real estate market in Lyon, with more people preferring urban living over suburban areas. This trend is partly due to the increasing demand for urban amenities and lifestyle, which are more readily available in the city. While suburban areas like Caluire-et-Cuire and Écully have seen some price increases due to demand for larger living spaces, the overall trend suggests a preference for urban living, which might lead to a slight decline in suburban property prices.
Demographic studies have shown a clear population shift from suburban to urban areas, driven by the desire for cultural activities and a more dynamic lifestyle. Surveys among Lyon residents highlight a strong preference for urban amenities, such as cultural events and public transportation, which are abundant in the city. The vibrant cultural scene in Lyon, with thousands of events annually, is a major draw for those who prefer the urban lifestyle.
Additionally, the public transportation network in Lyon is highly advanced and efficient, serving a large population and covering a vast area. This makes urban living more convenient and accessible, further encouraging people to choose city life over suburban areas. New urban housing developments are also seeing high occupancy rates, driven by the demand for modern, tech-smart, and energy-efficient apartments located in central areas.
Sources: Long Term Rentals in France, Lyon Campus, Only Lyon
17) Demand for accessible, senior-friendly housing will rise due to an aging population
As we look back at the trends from 2023 and 2024, it's clear that the aging population in Lyon is steadily increasing. By 2034, the population is expected to grow significantly, with a large portion being elderly. This demographic shift naturally leads to a higher demand for housing that caters to the needs of older adults.
The demand for healthcare and assisted living facilities is projected to rise by nearly 80% by 2030. This indicates a growing need for accessible and senior-friendly housing options, as more people will require environments that support their health and mobility needs. The increase in the number of people needing assisted living care further emphasizes this demand.
Moreover, the trend of seniors living independently highlights the necessity for housing that accommodates their specific needs. This includes features like single-story homes or those with elevator access, which are crucial for maintaining independence and safety. Programs like "One Roof, Two Generations" in Lyon show a clear preference for age-friendly housing, underscoring the importance of accessible living arrangements.
Sources: World Population Review, Sagapixel, AARP
While this article provides thoughtful analysis and insights based on credible and carefully selected sources, it is not, and should never be considered, financial advice. We put significant effort into researching, aggregating, and analyzing data to present you with an informed perspective. However, every analysis reflects subjective choices, such as the selection of sources and methodologies, and no single piece can encompass the full complexity of the market. Always conduct your own research, seek professional advice, and make decisions based on your own judgment. Any financial risks or losses remain your responsibility. Finally, please note that we are not affiliated to any of the sources provided. Our analysis remains then 100% impartial.